SERVICE SECTOR / Tetonka Drilling Inc. - Third Quarter Interim Report
CALGARY, Nov. 13 /CNW/ - Tetonka is pleased to report the results of its
operations for the nine months ended September 30, 1998.
Tetonka generated 342 rig operating days in the third quarter resulting
in rig utilization of 53.2 percent. The company's activity results continue
to be strong relative to competitive industry as the overall western Canadian
rig fleet attained utilization of 35.4 percent during this period.
Third quarter revenue was $4,015,000, yielding a year-to-date total of
$10,551,000. Net income of $523,000 ($0.04 per share) was generated in the
quarter resulting in a year-to-date total of $1,517,000 ($0.11 per share).
Cash flow was $1,387,000 ($O.10 per share) for the quarter with year-to-date
cash flow of $3,608,000 ($0.25 per share).
Merger and acquisition activity in the operating company sector has
resulted in recent changes to Tetonka's core client group. In September,
Sunoma Energy Corporation acquired Barrington Petroleum Ltd. (Tetonka Rig 5
client) followed by Alberta Energy Company's acquisition of Amber Energy Inc.
(Tetonka Rigs 3 & 4 client) in October. Tetonka looks forward to maintaining
a strong relationship with Sunoma and Alberta Energy in conjunction with the
integration of rigs 3, 4 and 5 into their respective drilling programs.
Industry completed drilling of 8,124 wells in the nine months ending
September 1998, 32 percent below the record pace of 1997. Projected growth in
demand for natural gas, supported by strong prices and expansion of pipeline
capacity is expected to provide a solid foundation for drilling activity as
the 98/99 winter drilling season commences, however, low oil prices will
continue to constrain overall drilling activity levels.
On November 9th, Tetonka announced that the company has initiated
construction of its eighth rig for commissioning in late December, 1998. The
new rig reflects Tetonka's commitment to expand services to its customers as
well as the company's confidence in the fundamental long-term strength of the
Canadian drilling market.
Tetonka Drilling Inc. is a public drilling contractor with operations in
western Canada. Its shares trade on the Toronto Stock Exchange under the
symbol TDI.
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